Pension investment managers expect lower yields this year

Private pension funds, which manage almost 2.6 billion RON in
net assets, could see their earnings down against 2009 amid a
decline in yields of government and corporate bonds, and amid less
than optimistic expectations as far as the stock exchange
performance is concerned, say investment managers of pension
management companies. Government bonds, shares and corporate bonds
are the main instruments in which pension funds invest. In 2009
mandatory private pension funds (2nd pillar) generated a 17.7%
yield, while voluntary ones (3rd pillar) had a 15.8% yield, with
the main investment instruments being government bonds, corporate
bonds and shares. “It will be a tough year as far as yields are
concerned. If problems continue at macroeconomic level, the Stock
Exchange may not perform very well. In the second half of last year
the Stock Exchange amid expectations that the crisis would be left
behind, which were proven wrong (…),” says Dorin Boboc,
investment manager of Allianz-Tiriac Pensii Private, which manages
a mandatory pension fund with over 1.25 million participants and
two voluntary funds with 44,200 clients.